Housing loan growth declines to 12% in 2008, while personal loan and real estate sector credit expansion slows down.
Housing loan demand declines as interest rates remain high, with growth rates halving from 25.8% to 12% within a year, according to the Reserve Bank of India.
Rising real estate prices and interest rates are causing a decline in home loan demand in India, impacting the housing sector's growth.
Finance Minister P. Chidambaram's decision to lower home loan rates highlights a slowdown in various sectors, despite commercial real estate thriving.
The Indian government acknowledges public demand for reduced home loan interest rates, particularly for loans under Rs 20 lakh, but leaves the decision to banks and the RBI.
SBI has reduced home loan rates, prompting other public sector banks to follow suit, making borrowing more affordable for individuals and businesses.
RBI's decision to hold interest rates steady has disappointed the real estate sector, which is grappling with a housing slowdown. Industry experts express concern over high mortgage costs and anticipate varied impacts across markets.
